The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 50,000 on The Nawada Central Co-operative Bank Limited, Bihar, for non-compliance with Know Your Customer (KYC) norms.

The penalty follows a statutory inspection conducted by the National Bank for Agriculture and Rural Development (NABARD) based on the bank's financial position as of March 31, 2025. After examining the bank's response and submissions, the RBI found that it had failed to upload customers' KYC records to the Central KYC Records Registry (CKYCR) within the prescribed timeline.

The central bank clarified that the penalty has been imposed for regulatory compliance deficiencies and does not affect the validity of any transactions or agreements entered into by the bank with its customers. The RBI also stated that the action is without prejudice to any further regulatory measures that may be initiated against the bank.